Intergovernmental Finance Council Meeting: Local and Provincial Leaders Voice Frustrations Over Fiscal Federalism
Summary
At the first Intergovernmental Finance Council meeting since Finance Minister Swarnim Wagle took office, local and provincial leaders voiced frustrations over budget allocations and fiscal federalism, criticizing the central government for retaining control over funds and limiting provincial authority.
Key Points
- Local and provincial leaders expressed strong frustrations over the central government's control and budget distribution, highlighting issues with fiscal federalism.
- Provincial finance ministers criticized reduced equalization grants and centralized budgeting practices that hinder provincial projects and autonomy.
- Concerns were raised over impractical agricultural loan policies, insufficient internal revenue, and ineffective project allocations affecting development.
- Finance Minister Swarnim Wagle acknowledged systemic issues and announced plans for major reforms and repealing outdated acts to strengthen federalism.
- Finance Ministry's Intergovernmental Finance Council meeting showcased a financial crisis despite political strength in Nepal's federalism.
